Preserve at Copperleaf

Preserve at Copperleaf benefits strongly from Houston’s ongoing population growth. The U.S. Census Bureau reported a 9.4% five-year population increase in Cypress-Fairbanks from about 552,000 residents in 2016 to more than 604,000 in 2021. This growth is fueling new schools, retail centers, service-oriented businesses, and over $1 billion in new healthcare facilities set to be completed from 2023-2025. Land around Preserve at Copperleaf is densely occupied so new supply risk in the submarket will continue to be mitigated. Additionally, Cypress-Fairbanks ISD anchors demand in the area as the #1 ISD for athletes and #6 overall ISD (Niche) in the Houston metro.

LSC owns 900 units within a 10-mile radius, making this a seamless fit into the portfolio. Beginning in September 2023, LSC started tracking this deal but was unwilling to meet the seller’s pricing expectations. Distress in the seller’s portfolio and pressure from equity lead to the seller’s capitulation. LSC became the buyer of choice due to $100M+ in transaction history with the Berkadia Texas Investment Sales team.

Preserve at Copperleaf received the 2023 Kingsley Excellence Award for resident satisfaction. LSC and its investors will take over a turnkey community with stable returns and minimal concern about major capital projects in the future.

Since 2018, Preserve has completed ~$6M of major renovations, leading to substantial rental increases and 94% average occupancy over the past 18 months.

Bridge financing will allow LSC sufficient time to transition to an affordable partnership with HHA and refinance into a 5-year, fixed-rate Freddie Mac loan.